Compared to a perfectly competitive firm, in a long run the monopolistically competitive firm will have
A) a lower price.
B) a lower average cost.
C) a horizontal demand function.
D) a lower rate of output.
Answer: D
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Protectionism refers to:
A) subsidizing imports. B) reduction of trade barriers. C) increased export of goods and services. D) reducing the competition faced by domestic firms.
A perfectly competitive firm has the cost function TC = 1000 + 2Q + 0.1 Q2. What is the lowest price at which this firm can break even?
What will be an ideal response?
If the national debt is owned by domestic citizens:
a. the debt will not have to be repaid. b. future interest payments transfer funds from one group of Americans to another. c. the debt will have to be repaid first to domestic creditors, then to foreign creditors. d. future interest payments will go to pay foreign debt first, then debt owed to American citizens.
Which of the following is the most likely to be a fixed factor of production at a farm?
A. The number of workers hired to harvest the crops B. The amount of water used each day C. The land on which the farm is located D. The amount of fertilizer used each week